Interesting article about Oil

wanghong

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8 ?4 q8 S) t( ], A! @7 a" uBelow is an Interesting article I found, which says that.....Do not
6 |6 }* f* G( c9 t6 x5 c/ l) H' gexpect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
6 t( t  W: X! G* n  x( Y8 u* wthese oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
: }4 ?) U8 x/ F& I  m, pEXXON, BG, BP, Cheveron ....xyz.. oils

( _1 U5 k5 r, jRecently OPEC reduced crude oil production twice over just a few
7 c0 L- J5 s, ~months. There are three wars going on in Gaza, Iraq and Afghandistan.
. `2 ^/ C6 l( t) BA year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.
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1 A, E; v) o- N  Y" VThere are several reasons the price of oil is decreasing in the face
+ q* |. o1 U" s. u* Qof so much news. These reasons are:
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1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
) y/ [8 X( y  H( G. u; kArabia.

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6 Z- p) b4 l+ t' ~- G$ X' g2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.

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3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
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4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
& V$ X' e: Y7 t  b' v- spotential per acre in some cases is astounding. Many countries are
& ^& ^& ?+ q4 ]7 I# |racing to produce bio fuels.
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5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
7 |  |9 e3 @! d8 t9 c3 O. ]/ Acattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.
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3 E4 _5 H- t7 e' a4 b: i1 `
1 v2 [6 o$ V+ O  S6. There are 99 nuclear reactors in various stages of planning and
& m# v3 i6 F& ~( g' \& Gconstruction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
3 M# |/ i4 D" [  qwill replace oil.
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: E6 N9 g  S0 e" d+ w8 j; H7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
6 V$ x% P5 d. O  o* F  D6 Mwith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
- b- y( b% }+ a0 V) Hequipment.
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Airlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
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' k# V* J6 ?8 }3 @  J0 x8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
' |  N( y% D1 n; Qavailable at very little cost or risk. The gas is displacing crude
oil.
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9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
" c! z; Y5 V# G0 ^# xoil wells.


10. Solar, wind and ocean energy is displacing oil as an energy
" k3 [8 x! x8 o4 Fsource. Three new wind turbines are being erected every day in the US.
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! p- j, K  m' p" }Each of the above by itself will not make a large difference in the
price of crude oil but the sum of all of them together is world
, @* j- x8 W% G/ q0 c6 Ichanging. The important thing is that OPEC no longer has the ability
8 |7 ~1 {% [7 ^to control oil prices.
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With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only